EOG Sec 17 08N 04W McClain County

This is related to the Wilson 0817 wells. I noticed that the 5H through 7H wells are now producing effective 6/13/19. The 1H through 4H were completed August 2018. I inherited mineral rights in this section and completed probate on my mother and father’s estates in Oklahoma in early 2016. While I have received regular OCC updates on the wells from the EOG attorney, the only correspondence received from EOG was a question in February seeking clarification of the inheritance. All documents were filed with the respective county clerks at the time of probate. We answered their questions, and that was the last we have heard, no division orders, no checks. Is anyone else still waiting for these items? Very disappointing.

Thank you for your response,

Mary Herrig

Mary- EOG is way behind on their DO’s. Be sure to send them a letter requesting interest as per state statutes. You will get paid.

I also own in this section and have been following along for a year or so. Does anyone have an idea when this will start paying? From previous post I’ve read on here it should have by now? Anybody know?

Is there a preferred format for the interest demand letter? Is there critical verbage required?

Thank you,

Mary Herrig

I also own mineral rights in this section. EOG has had production going on Wilson 1h-4h since August of last year and did bring on 5h-7h recently according to the OCC website. It seems odd that they have not even issued division orders 12 months later.

I emailed EOG recently (see reply below) and found their answer vague and of little help. In essence we will pay you when we pay you!

Does anyone know if this is normal? Are there some legal issues at some point beyond potential interest payments? 12 months seems like an exaggerated time to issue royalty checks.

I know several investors have been buying up rights for quite some time. I would think they would be even more impatient and willing to take legal action if it is appropriate.

I am new to this type of investment…does anyone know, is this normal, is this ok?

Mr. ___________,

EOG is currently waiting on the division order title opinion to be completed for these properties in order to set up the revenue decks and issue division orders and revenues. Until the attorneys are able to complete that and submit it, EOG is unable to confirm your revenue interest or provide division orders.

Once the wells are set up, all owners will be credited with their share of royalties going back to first production.

Thank you,

Andrew Gleinser, RL

Independent Landman on behalf of

EOG Resources, Inc.

This is normal. EOG is very behind on their division orders. When they drill multiple wells, it takes them longer to get all the paperwork done. You will eventually get paid.

I suggest that you send a certified return receipt letter to the Division Order department. State you name, exact legal description, name of the well(s) and request both a Division Order and your interest. They know you exist, but this way you have a paper trail if needed. Wait a month and send it again if necessary. Patience usually pays off and the more they drag their heels, the more interest you will receive. Here is an example wording from another post on the forum asking a similar question.

“In accordance with Oklahoma Revenue Production Standards §52-570.10, paragraph D.1., please remit payment for interest due this revenue in the amount of 12% per annum, effective first production.”

I just sent a letter yesterday, but addressed it to the Land Department requesting interest. Should I re-sent it to the Division Order department? Is this also at the Houston address?

I think it is generous of us mineral owners to “voluntarily” delay our royalty payments indefinitely in order to provide EOG with the necessary cash flow to fund the drilling of the 7 wells. I"m sure EOG will be eternally grateful. Shades of Enron showing through.

Thanks so much for your input. I was hoping you would reply to this thread! I will follow your suggestions!

Hopefully this won’t take much longer! Not trying to be greedy but this has been going on for a long time.

Roan is playing the same game. Capital for new drilling has dried up. Using cash that belongs to royalty owners is a good economic option even at 12%. They wont pay the penalty to anyone who doesnt demand it and will battle over title when they can so real cost will be much less than 12%.

Better if you send it to the Division Order department as they are the ones that do the title work after the well. Land Department is before the well and the letter may get lost. That title work is usually done by outside counsel and may takes months to do as their are hundreds of titles to check. Demanding my interest usually gets me some attention.

Thank you Ms. Barnes, always appreciate your input. I will send the letter to the correct department this time.